Oil And Natural Gas Corporation Q3 Results Review - Volumes Slip; Long-Term Story Intact: ICICI Securities

ICICI Securities Report

Oil And Natural Gas Corporation Ltd.'s adjusted Ebitda/profit after tax (standalone) for Q3 FY24 of Rs 163.5 billion/Rs 95.4 billion dipped 15%/14% YoY, with 3%/4% YoY decline in oil and gas output and a 10% YoY jump in opex (other than stat duties and employee expense).

9M Ebitda/PAT of Rs 526/Rs 297.6 billion were down 16.5%/23.8% YoY. Consolidated Ebitda/PAT of Rs 814.3 billion/Rs 381.5 billion in 9M FY24, however, has been very strong, driven by a sharp recovery in subsidiaries Hindustan Petroleum Corporation Ltd./Mangalore Refinery and Petrochemicals Ltd. earnings, even as OVL’s earnings remained subdued.

Going forward, the commencement of the large KG basin asset remains the key performance driver over FY25-26E – will likely fuel a material jump in production.

We also expect conspicuous recovery in HPCL/MRPL’s earnings prospects coupled with reducing leverage in consolidated balance sheet. Reiterate 'Buy'.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.